"In their planning for the near term, fiscal policymakers will need to continue to take into account the low level of economic activity and the still-fragile nature of the economic recovery," he said.

It was Bernanke's first trip to Capitol Hill since the Fed announced plans in November to buy $600 billion in additional long-term Treasuries to try to spur greater economic activity. The policy sparked widespread criticism, especially from conservative economists and lawmakers, but Bernanke faced relatively few questions about the policy known as quantitative easing, or QE2 for short, during the questioning.

He defended the policy, saying he didn't believe it risked inflation. He said that the rise in oil prices since the start of the policy is due to greater demand globally, not a weakening of the dollar or a shift of investment into commodities in reaction to the policy.

"I think we are contributing to a better outlook for the economy," he said in response to questioning.

He did clarify his recent statements about being 100% confident the Fed could unwind the stimulus it has pumped into the U.S. economy in recent years without a return to unwanted levels of inflation. He said he was only trying to say that the Fed has the tools it needs to avoid a return of inflation, promising that it will succeed in its goal.